Eutelsat in Talks with ISRO as India’s $44 Billion Space Economy Beckons Startups
In a development that underscores India’s rising stature in the global space economy, European satellite giant Eutelsat has confirmed it is in active talks with the Indian Space Research Organisation (ISRO) for future satellite launches . The negotiations, confirmed by Eutelsat CEO Jean-François Fallacher, represent a significant vote of confidence in India’s launch capabilities and its broader vision of building a thriving commercial space sector .
For India’s burgeoning space-tech startup ecosystem, this is more than just a headline—it is a signal that the global market is taking notice. With the Indian government targeting a $44 billion domestic space economy by 2033, the conditions are ripe for startups in satellite technology, launch services, and space data applications to scale globally .
Why Eutelsat Is Looking to India
Eutelsat, Europe’s primary competitor to Elon Musk’s Starlink, is seeking to diversify its launch options beyond SpaceX and Europe’s Ariane rockets . Since losing access to Russia’s Soyuz rockets after the Ukraine invasion, the company has been strategically expanding its launch partners. It has already signed a deal with MaiaSpace, a French startup developing Europe’s first reusable mini-launcher, and is now turning to ISRO .
The strategic rationale is clear. As Fallacher explained during a visit to New Delhi in February 2026 as part of French President Emmanuel Macron’s delegation, “India is a huge country … so getting market access is strategic” . He emphasized that launch capacity must be secured years in advance—a long-term planning horizon that aligns perfectly with India’s ambitions to become a reliable, cost-effective launch destination .
France and India have deepened ties in defence, space, and maritime security . Last year, President Macron urged the two countries to collaborate on space, warning that reliance on non-European providers was “madness” . This political alignment creates a favourable environment for commercial deals between European satellite operators and India’s space ecosystem.
Notably, ISRO and Eutelsat already have a history. Before the Eutelsat-OneWeb merger, ISRO launched 72 OneWeb satellites on its LVM3 rocket—a testament to India’s proven launch capabilities . Expanding this partnership would be a natural next step.
The $44 Billion Opportunity: India’s Space Economy Targets
India’s space economy is on a trajectory of exponential growth. According to Union Minister Dr. Jitendra Singh, speaking at the India Mobile Congress 2025, the sector is projected to expand from $8.4 billion in 2022 to approximately $44 billion by 2033 .
This growth is being driven by landmark reforms that have opened the space sector to private players. The establishment of IN-SPACe (Indian National Space Promotion and Authorization Centre) and New Space India Limited (NSIL) has dismantled decades of state monopoly, enabling private innovation . The results are tangible: more than 300 space startups have emerged in just five years, making India the world’s fifth-largest space startup ecosystem .
India has also built a strong commercial track record, having launched 433 foreign satellites, generating over $190 million and €270 million in revenue . This success is rooted in India’s reputation for cost-effective innovation—Chandrayaan-3’s historic lunar landing cost roughly half of comparable international missions .
The Startup Landscape: Who’s Leading the Charge?
India’s space-tech startup ecosystem is maturing rapidly, with several companies emerging as potential global players.
Skyroot Aerospace: On the Cusp of Unicorn Status
Hyderabad-based Skyroot Aerospace is poised to become India’s first space-tech unicorn. The company is reportedly planning to raise approximately $200 million (around ₹1,800 crore) in a fresh funding round, which would value it at over $1 billion . It has already appointed Kotak Mahindra Capital to advise on the stake sale .
Founded in 2018 by former ISRO engineers Pawan Kumar Chandana and Naga Bharath Daka, Skyroot made history in 2022 as the first Indian private firm to launch a rocket into space with the Vikram-S sub-orbital mission . The company is now preparing for the first orbital launch of its Vikram-I rocket in 2026, designed for small satellite launches with 3D-printed engines and carbon-fibre structures .
The company operates the Infinity Campus, India’s first private integrated rocket development facility, and plans to scale up launch frequency to one mission per month by 2027, with estimated costs of $4-6 million per launch .
EON Space Labs: Building India’s Optical Payload Capability
EON Space Labs is another standout player, focused on developing optical payloads for satellites, drones, and ground systems . The Hyderabad-based startup designs and manufactures cameras and sensors for Earth observation, surveillance, and defence applications—sectors where import dependency has historically been high.
EON’s products span the full spectrum: MIRA and Argus for space-based Earth observation, LUMIRA for aerial platforms, and BUHO for ground-based surveillance . Its systems can detect objects up to 10 kilometres away, with infrared capabilities for low-light and night-time conditions. The company designs its optical systems end-to-end in-house, with precision manufacturing supported by HHV Advanced Technologies in Bengaluru .
EON’s potential customer base includes satellite manufacturers such as Galaxeye, Dhruva Aerospace, Digantara, and defence companies like IdeaForge and Airbotix. The company is targeting a $10-15 million funding round to establish in-house manufacturing and expand exports .
Opportunities for New Entrants
The Eutelsat-ISRO talks and the broader growth trajectory of India’s space sector create fertile ground for startups across the value chain:
| Segment | Opportunity |
|---|---|
| Satellite Technology | Building cost-efficient, modular satellites for communication, imaging, and IoT |
| Launch Services | Leveraging ISRO’s infrastructure while innovating in reusable and small-lift launch vehicles—as Skyroot is demonstrating |
| Space Data Analytics | Transforming satellite data into actionable insights for agriculture, climate, defence, and logistics |
| Optical Payloads & Components | Developing high-precision sensors, cameras, and propulsion systems—as EON Space Labs is doing |
| Ground Systems | Building ground station networks, tracking systems, and data processing infrastructure |
India’s space roadmap also includes ambitious long-term goals: establishing the Bharatiya Antariksh Station by 2035, landing an Indian astronaut on the Moon by 2040, and launching more than 100 satellites over the next 15 years through government-private partnerships .
The Road Ahead
The Eutelsat-ISRO talks are not yet a done deal, but the fact that they are happening at all is significant. As Fallacher noted, “We are preparing for the future, because launch capacity needs to be prepared very much in advance” . For Indian startups, this means the window of opportunity is opening now.
The government’s commitment to the sector is clear. India is repositioning its space programme to shift routine manufacturing and commercial activity to the private sector while freeing ISRO to focus on advanced research and exploration . With a $44 billion target, a thriving startup ecosystem, and global players knocking on the door, India is well on its way to becoming a true space power.
As Dr. Jitendra Singh remarked, “Seventy per cent of our space technology is dedicated to development and ease of living, not just rocket launches” . For startups building the next generation of space technologies, that is both an invitation and a challenge—to build not just for India, but for the world.
